Do investors trust Volkswagen to investigate itself and lay the appropriate blame? Not these three groups.
With the financial damage of the diesel emissions scandal now clear, three large investor groups are calling for accountability and the launch of an independent investigation, Reuters reports. (Read More…)
With debt collectors closing in on all sides, Saab’s shaky PR took another hit today as the Swedish media repotred that members of the board of Swedish Automobile (SWAN), Saab’s parent company, received pay increases of some 633 percent over 2010. Thelocal.se reports that
New chairman of the board, Hans Hugenholtz, received a raise of 633 percent, from 147,150 kronor (about $23k) to 611,163 kronor (about $950k). Others also had their pay increased significantly.
Though the amounts are relatively small, and the dwindling ranks of unquestioning Saab supporters argue that the compensation is low compared to the Dutch average (SWAN is incorporated in The Netherlands), this is just the latest PR disaster to hit the struggling automaker. One Saab employee sums up the mood:
It feels like everyone is out to grab what they can get.
And no wonder they feel that way. Not only did worker paychecks arrive late, but Sweden’s national debt office has begun foreclosing on the first of its outstanding claims… and the initial amount (about $58k) could have been covered by the chairman’s pay increase alone. Sending the message that board compensation is more important than staying out of insolvency has to be some of the worst PR imaginable. Still, some will defend Saab no matter what…
Victor Muller will no longer have a problem reaching a quorum or a unanimous decision at Saab board meetings. Muller is the sole remaining director. The rest of the board bailed. (Read More…)
GM’s newest board member, UCLA Psychology faculty member Cynthia Telles, and her husband, former California Assembly Speaker Robert Hertzberg, addressing the 2000 Democratic convention. Telles has served on the boards of Kaiser Foundation Health Plan and Burlington Northern Santa Fe Railroad (where she served with GM Chairman/CEO Ed Whitacre), as well as several banks. She has no Auto Industry experience, but at least she knows Ed Whitacre and has strong ties to the Democratic party. Or, as Ed Whitacre puts it in GM’s official release:
The addition of Dr. Telles to GM’s board of directors ensures that the company will continue to benefit from a diversity of perspectives and experience in our mission to provide consumers with the world’s best vehicles
Autoextremist Peter DeLorenzo is an interesting figure in the auto commentary landscape. Though TTAC has often taken the pioneering car blogger to task for inconsistencies (especially during bailout mania), it’s no surprise that DeLorenzo’s ability to see things as they are comes and goes. After all, the guy is the quintessential insider’s outsider: as a former marketing and ad man, the Autoextremist is always in the Detroit tent… the only question week-to-week is whether he’s going to be pissing out or pissing in. Well, this week the deluge is headed straight for the part of the tent occupied by GM’s new CEO Ed Whitacre and his activist board. And it smells of well-aged vintage Deathwatch.
But before I get into Whitacre’s executive moves, you’re probably gathering I’m not buying “Big Ed’s” act, and you’d be right. After doing some digging around Whitacre’s previous executive life at AT&T, it’s easy to come away with a highly unflattering portrayal of GM’s “interim” CEO. First of all, the “aw shucks I’m just a country boy who has a few good ideas” persona is total bullshit. In his previous executive life Whitacre was known as an arrogant know-it-all who was never wrong, never listened to reasoned advice and who brought absolutely nothing to the table of his own on a day-in, day-out basis. Shocking? Hardly. Anyone who thinks The Peter Principle isn’t alive and well in corporate America today is kidding themselves.